What is Recurring Deposit Account, How to open

 What is Recurring Deposit Account

Hello friends, in today's article we are going to talk about Recurring Deposit Account, such as what is Recurring Deposit Account, document to open Recurring Deposit Account, how to open Recurring Deposit Account, Recurring Deposit Account opening We are going to talk in detail in this article about the advantages, disadvantages of opening Recurring Deposit Account etc. After reading this article, perhaps you will not need to read another article about Recurring Deposit Account. So definitely read the article till the end. So let's start.

What is Recurring Deposit Account

What is Recurring Deposit Account?

       Recurring Deposit Account (Recurring Deposit Account) is a type of account in which a fixed amount is deposited every month or every year for a fixed period of time on Recurring Deposit Account (Recurring Deposit Account) by banks or post offices at 7% quarterly compounding respectively. Interest is given and you can get maximum interest on your deposited money. Recurring deposit account opening facilities are provided by each bank and post office, this account can be opened for at least six months and more than ten years, some banks open recurring deposit accounts for more than ten years, and this Account minimum Rs.100. Can be opened from every month. In this you can deposit a small amount or the account is mostly for children and students in whom small savings are encouraged.

Documents to open Recurring Deposit Account

  •   Bank's Application Form (which the bank will give you for free)
  • Aadhar Card or Aadhar Letter Card
  • voter ID card
  • mnrega job cord
  • Identity proof with photo issued by the Central or State Government
  • Photo identity card issued by any government statutory or organization
  •   Photo identity card issued by a public sector company
  • valid passport
  • driving license
  • pan card
  • In short, you need a passport size photo, one or two identity cards, signature, and some money through which you can open your Recurring Deposit Account.

How to open Recurring Deposit Account 

        It is easy to open Recurring Deposit Account (Recurring Deposit Account) account in the bank. You can open an account offline by visiting the bank, or online through net banking or through the app.
How to open Recurring Deposit Account (Recurring Deposit Account) by going to the bank?
If you already have an account, then you will have to go to the bank and apply for opening only one Recurring Deposit Account, after that your RD Account will open.
But if you do not have an account with the bank, then you will have to go to the bank with the original and Zerox of the above mentioned documents and fill the application form and submit it with Zerox, after that your account will be opened.

How to open Recurring Deposit Account through Net Banking?

  • To open Recurring Deposit Account (Recurring Deposit Account), you have to go to the net banking website of your bank.
  • After that you have to log in with your Username and Password.
  • Find Open Deposit Account or Recurring Deposit Account or similar option
  • Choose the amount and period for which you want to make Recurring Deposit. and summit
  • After that pay as much amount as you want to open Recurring Deposit Account, in this way also your RD Account will be opened.

How to open Recurring Deposit Account through Online App?

  • To open through Recurring Deposit Account app, you have to download the mobile app of your bank.
  • After that you have to log in with your email or mobile number.
  • After that one has to find Open Deposit Account or Recurring Deposit Account or similar option. And clicking on it will open the link to open your account.

What are the benefits of Recurring Deposit Account?

  •   You do not need to go to the bank to open Recurring Deposit Account, one can open Recurring Deposit Account (Recurring Deposit Account) by himself in five minutes using online mobile banking or netbanking.
  •   A person can earn good money by depositing a small amount in Recurring Deposit Account after household expenses, this account can be started with a minimum of 100 rupees.
  • Government banks, private banks or post offices all pay maximum interest on deposits in Recurring Deposit Account as compared to other accounts.
  •   There is no need to go to the bank to deposit monthly installment in Recurring Deposit Account, this account is linked to savings account or current account, due to which the money of automatic monthly installments is deducted and becomes Recurring Deposit Account.
  • Any person can close his Recurring Deposit Account anytime he wants. But during premature withdrawal, the account holder may have to pay some amount as penalty depending on the bank. And the interest rate is also given at a lower rate.
  • Recurring Deposit Account is insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to ₹5,00,000
  • Recurring Deposit Account (Recurring Deposit Account) is a good feature of the account. This account comes in handy in the future for meeting annual education fees for your children, higher education costs, furnishing and renovation costs if you own a house, foreign holidays, managing wedding expenses, etc.

What are the disadvantages of Recurring Deposit Account?

  •    If you deposit money in Recurring Deposit Account, you will not have the privilege of withdrawing any part of the money till the end of the term of the deposit. Hence, if you are looking for an easy liquidity instrument, then Recurring Deposit is a bad idea. On the other hand, this disadvantage can work to your advantage if you want to discipline your savings.
  • The rate of interest you earn on Recurring Deposit Account is very less as compared to regular fixed deposit schemes.
  • In case of Recurring Deposit Account it is not possible for you to change your deposit amount irrespective of your financial position at the moment. With a fixed amount to invest every month, the prospect of having extra or less money to deposit discourages anyone from choosing this product.

How to close Recurring Deposit Account?

You can close your Recurring Deposit Account in any of the ways given below.

Offline Method :- Visit your bank branch and submit the request for closure of your Recurring Deposit Account.

Net Banking Method: -Log in to the net banking facility of your bank and follow the steps required to close your Recurring Deposit Account

Mobile Banking Method :- Log in to your bank's mobile application and follow the steps required to close your Recurring Deposit Account.

QNA

Q. How can I open Recurring Deposit Account?
Ans. You can visit the official website of the bank from which you want to open Recurring Deposit Account and open RD account by submitting the documents. Or you can open a Recurring Deposit Account by going to any bank and depositing the required documents as per the rules of the bank.

Q. If I want to open Recurring Deposit Account, is nomination facility provided?
Answer. Yes, you can nominate someone as a beneficiary when you open a Recurring Deposit Account.

Q. What is the minimum tenure for Recurring Deposit Account?
  Ans. The minimum tenure for Recurring Deposit Account varies from one bank to another. Most of the banks offer Recurring Deposit Account scheme for at least 6 months or 12 months.

  Q. How much interest can I earn through Recurring Deposit Account?
Answer. It depends on the amount you deposit in the Recurring Deposit Account, the tenure of the RD and the interest rate offered by your bank for that tenure.

Q. What is the minimum amount required to open Recurring Deposit Account?
Answer. The minimum amount required to open a Recurring Deposit Account varies from bank to bank and can be as low as Rs 10.

Q. Who can open Recurring Deposit Account?
Get off Anyone can open Recurring Deposit Account. Some banks allow people to open joint RD accounts and people can also open this account in the name of their minor child's wife, husband etc.


Question. Do senior citizens get additional benefits on their Recurring Deposit Account?
Get off Yes, usually banks in India provide additional interest rate on Recurring Deposit Account to senior citizens.

Question. Can I withdraw my Recurring Deposit Account before the end of the term?
Get off Yes, you can withdraw your Recurring Deposit Account before the maturity date. But the bank deducts a penalty of up to 1% on that tax or cuts the interest rate.

Question. Can I add a nominee to my Recurring Deposit Account?
Get off Yes, you can add a nominee to your Recurring Deposit Account.

Question. Can tax be saved on Recurring Deposit Account?
Answer. Yes, tax on recurring deposit can be saved by depositing money in Recurring Deposit Account for medium term or long term.
Location: India

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